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HARARE – Gold producer, Blanket mine has lowered its production forecast for the year despite recording improved output in the quarter ended September 30.
Blanket mine, which is located in Gwanda, Matabeleland South Province, is one of the biggest producers of gold in Zimbabwe.
In a quarterly production update, its parent company Caledonia Mining Corporation said third quarter production stood at approximately 13 978 ounces, 10 percent above second quarter production but three percent below the same period last year.
Gold produced for the nine months to September 30, 2018 was 39 559 ounces, marginally behind the 39,710 ounces produced in the corresponding period in 2017.
“The directors of Caledonia have taken a decision to marginally reduce and narrow the range of 2018 production guidance from 55,000 to 59,000 ounces to a range of between 54,000 and 56,000 ounces,” the company said.
“As a result of the adjusted 2018 production guidance and the recent weakness in the gold price, assuming the current spot gold price is maintained for the rest of 2018 and assuming no material change in the company’s operating costs, Caledonia expects full year 2018 adjusted earnings to be in the range of 140c to 150c per share.
“This is a reduction from the previous earnings guidance of 165c to 190c per share but is three per cent to 12 per cent higher than the earnings achieved in 2017.”
However, the mine remains on track to achieve its production target of 80,000 ounces in 2021.
Commenting on the results, Caledonia chief executive officer Steve Curtis welcomed the production levels achieved in the third quarter.
“The Company expects this improvement to be maintained in the fourth quarter of 2018. Notwithstanding the improved operating performance, we believe it is appropriate to adjust and tighten our production guidance for 2018,” he said. – New Ziana
Bongani Ndlovu